It usually starts with ‘just a hobby’. A batch of cupcakes for a friend, a handmade candle someone insists on paying for, a favour that turns into a regular gig.
Before you know it, your hobby is bringing in a bit of extra cash.
And you’re not alone. With rising living costs, more people are looking for ways to supplement their income.
According to the latest Australian Bureau of Statistics data 961,400 people now have multiple jobs, which could indicate that side hustles are becoming part of everyday life.
So, where’s the line between a casual hobby and income that actually counts – especially when it comes to Services Australia payments?
Let’s break it down.
How do we assess the income and assets of a hobby?
First, let’s talk about assets.
If it’s genuinely just a hobby, not a business, then any equipment you use like an oven, musical instruments, tools, art supplies is included in your general estimate of household contents and personal effects.
A quick reminder: when you estimate the value of your household contents, we’re looking for what you’d get if you sold them today. Not the replacement value, not the insurance value, just a realistic second‑hand price.
You don’t need to tell us about your hobbies unless your equipment significantly changes in value or you start getting paid for what you make.
When do you need to tell Services Australia about this side hustle?
If you receive income from your hobby or business, you must tell us on the day you report your employment income (if you report each fortnight) or within 14 days, whichever is earlier.
How we assess this income will differ depending on your intention to make a profit, even if it’s a small one.
If you sell your personal assets at a swap meet or similar sale, the money you get isn’t counted as income. However, if you regularly buy items to sell with the intent of making a profit, then you’ll need to tell us as we may count this as income.
If your intention is to make a profit:
We assess your net income, that is, your income minus allowable business expenses, as well as any business assets you have.
If you’re not intending to make a profit:
We assess the gross amount you receive (that’s the amount before any expenses).
This type of income is assessed for 12 months from the date you’re paid.
Cut off point:
It’s important to remember that just because you’ve sold something, doesn’t necessarily mean you’ve made a profit.
But I know many of you will want to know how much you could earn in a fortnight before you reach the cut off point – which is where we pay you $0 for that fortnight.
Your cut off point will depend on the payment you’re receiving. It could be higher if you get Rent Assistance or Work Bonus. Your cut off could be lower if you don’t live in Australia.
For example, if a single Age Pensioner earns more than $2,619.80 in a fortnight - their payment will be reduced to $0 for that fortnight.
| Your situation | Fortnightly income cut off point for the Age Pension |
|---|---|
| Single | $2,619.80 |
| A couple living together | $4,000.80 combined |
| A couple living apart due to ill health | $5,183.60 combined |
| A transitional rate pensioner - single | $2,662.25 |
| Transitional rate pensioners - couple living together | $4,324.00 combined |
| Transitional rate pensioners - couple living apart due to ill health | $5,268.50 combined |
Free financial help and where to report your side hustle income
Side hustles can be a great way to earn a little extra money, share your skills, or turn your passion into something more. To avoid surprises down the track, it’s important to understand how that income may affect your Services Australia payments.
If you’re unsure how your hobby or side hustle might be assessed, you can talk to one of our free Financial Information Service officers. They can help explain what counts as self employment, how your income will be assessed, and if Work Bonus can help.
The Work Bonus allows eligible pensioners to keep more of their pension when they participate in work, including some types of self employment.
But if it’s considered hobby income, the Work Bonus can’t help you. The distinction matters and FIS officers can help you understand which applies to your situation.
And remember, you must tell us if you receive income from your hobby or business activity. You can tell us online through myGov, the myGov app or Express Plus Centrelink app. You can also call us or visit your local service centre.
For more information on how and when to report, head to our website.
Originally published by Yahoo Finance on 6 May 2026.